Niox Group Share News (NIOX)

(Sharecast News) - Niox Group reported strong first-half trading on Tuesday, driven by robust growth in both clinical and research revenues, and said it remained confident in its strategic plans despite some uncertainty around research demand.

Revenue for the six months ended 30 June rose 20% year-on-year to about £25.2m, or 21% on a constant currency basis.

Adjusted EBITDA increased 30% to around £9.2m, while the company maintained a strong cash position of £11.8m despite paying a £5m dividend in June.

Clinical revenues, which accounted for the majority of group sales, grew 8% to £20m, supported by recurring demand for the company's FeNO testing devices used in asthma and COPD care.

Research revenues more than doubled to £5.2m, reflecting increased clinical trial activity by pharmaceutical firms, particularly in the respiratory space.

However, the AIM-traded company cautioned that future research demand remains dependent on trial funding and could vary over the second half.

Gross margins slipped by around two percentage points to 70%, due to a higher mix of research-driven device sales.

Overheads were broadly flat year-on-year, excluding £0.3m in exceptional costs related to the now-abandoned takeover bid by Keensight Capital.

"I'm particularly proud of how the team has stayed focused and maintained momentum, delivering strong growth in revenues and profits despite external distractions associated with the withdrawn Keensight bid," said CEO Jonathan Emms.

"We remain committed to driving sustainable growth in our core clinical business, which continues to benefit from a high degree of recurring revenue."

He added that initiatives to expand FeNO testing in the US and the planned launch of the new Niox PRO device are expected to underpin further progress.

Niox reiterated that it had seen no material impact from recent US tariffs and did not anticipate any significant effect, with the company prepared to offset any cost increases through pricing.

Interim results for the period would be released on 30 September.

At 0947 BST, shares in Niox Group were up 2.05% at 69.8p.

Reporting by Josh White for Sharecast.com.